With the high occupancy rates of San Diego, the income thresholds have not made any of our units hard to rent. 

@Chanoch MollerHave you looked into hard money lenders?

@Jason DiClemente Parents did the due diligence and they confirmed it was healthy and in control...hard to shoot down their judgement given their years of experience and how conservative they are!  

My questions are;  Besides a note stating the SFH as collateral, what documents do I need to protect myself should this go south.This is my first attempt at Hard Money lending and others have inquired of me but I want to get this under my belt first.Thanks for any and all help you can provide.

How can I use hard money for Foreclosure Auction?

Hard to come by!

You can fix and flip without any out of pocket money if:1) you find a great deal, and 2) receive 100% hard-money.What I recommend is that you find the great deal and JV with another experienced rehabber. 

Your tenants will be hard pressed to have to give up the convenience or the 'air miles' I would just work it into the pricing model.

There are enough hard money lenders out there that lend more on the hard asset then personal or combined credit.Locate a hard money lender for either apartment deals or flips and figure out what they like to lend on, then go and source those deals!

Buying smaller MF is not hard if you have the funds.